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January 2017 confidently live life with ease Investor Presentation Forward-Looking Statements These statements involve known and unknown risks, uncertainties and other factors that may This presentation contains certain cause our actual


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confidently live life with ease

January 2017 Investor Presentation

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Forward-Looking Statements

In some cases, you can identify forward-looking statements by the words “expect,” “intend,” “target,” “plan,” “estimate,” “predict,” “opportunity,” and “continue,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Forward-looking statements include statements about future demand for our Eversense™ System and future products, if any, that we may develop; the growth of the CGM market; the factors that we believe drive demand for our Eversense™ System and our ability to sustain such demand; the size of the market and competitive landscape for our Eversense™ System; the initiation, timing, progress and results of our clinical trials; our plans for the Eversense™ System and our expectations about completion of its development and the timing of the submission for regulatory approval by the FDA, and the timing for receiving such approvals; our enhancement of the Eversense™ System, including the extension of sensor life and improvements in accuracy; launch of the Eversense™ System in the United States and European countries; expected long-term gross profit margins; our plans for pursuing coverage and reimbursement for our Eversense™ System; our ability to protect and enforce our intellectual property rights; and anticipated trends and challenges in our business and the market in which we operate. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward- looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this presentation, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. Factors that may cause actual results to differ materially from any future results expressed or implied by any forward-looking statements include the risk that we may not achieve greater market acceptance of our Eversense™ System; the risk that we may not be able to establish sales and marketing capabilities in order to meet demand for our Eversense™ System; risks associated with competition in the diagnostics industry; risks associated with the performance of our Eversense™ System; the risk that we may not receive regulatory clearance for our Eversense™ System in the United States; the risk that we may not be able to comply with extensive ongoing regulatory requirements; risks associated with reliance on a limited number of suppliers; the risk that we may not be able to successfully develop or introduce new or other applications of our technology at all or in a timely manner; the risk that we may not be able to maintain and expand coverage and reimbursement from health insurers and other third-party payers; risks associated with limited patent protection; the risk that we may not successfully manage our growth; and risks associated with reliance on outside financing to meet capital requirements. For further information regarding these risks, uncertainties and other factors you should read the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2015, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 and our other filings we make with the Securities and Exchange Commission from time to time. Any forward-looking statements speak only as of the date of this presentation. We undertake no

  • bligation to publicly update any forward-looking statements, whether as a result of new

information, future events or otherwise. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.

This presentation contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements.

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confidently live life with ease

develop and commercialize transformative glucose monitoring products.

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The Market Is Quickly Growing

2 4 6 8 10

2015 2020

Europe U.S.

Millions of Patients

Europe U.S.

Type 1 CGM penetration, in the US, projected to grow from 8% to 45% by 2020

$0.7 $2.5 $6.5 $3.3 $3.5 $5.8

$0 $1 $2 $3 $4 $5 $6 $7 $8

CGM* Insulin Pumps SMBG

Revenue In Billions

2015 2020 Est. 2015 2020 Est. 2015 2020 Est. ~35 – 40% CAGR ~8% CAGR ~(2%) CAGR

CGM fastest growing segment

Intensively Managed Population

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Introducing the Highly Differentiated CGM System

Highest accuracy Longest sensor life Best convenience Eversense is the CGM system with the …

Of patients say they would use it everyday to manage their diabetes

88%

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The Eversense System

Sensor Smart Transmitter Mobile App Sensor that lasts up to 180 days No weekly sensor insertion No open wound Removable and rechargeable On-body vibe alerts Gentle-on-skin adhesive No extra device to carry iOS and Android platform Alarm settings & reports

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Established, Proven Sensor Technology

Non-enzymatic, fluorescence based measurement Simple in-office procedure – less than 5 mins Best-in-class accuracy Tested in over 900 sensors in 500 patients, 100,000 sensor wear days no weekly sensor insertion no open wound no sensor wasted when transmitter removed Lasts up to 180-days without removing

Polymer Hydrogel Biocompatible Encasement NFC Antenna Optical Interface

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  • n body alerts

for extra security

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Eversense Mobile Platform Enables Advanced Features

Email PDF report to caregiver

Reports Directly on App Predictive Low/High Glucose Alerts & Rate of Change Alerts Readings on Applewatch Remote Monitoring with Eversense Now

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U.S. PRECISE II Study Completed

largest continuous single-sensor pivotal study in the world

16,000+ paired data points, 2,000,000+ sensor glucose readings

Determine safety and accuracy Long life

94% of subjects thru 90 days of continuous use 73% of subjects projected thru180 days of continuous use

safe

No Infections No adhesive reactions

accurate

MARD

8.8%

Glucose range

  • f 40-400 mg/dL

Throughout 90-day use

industry leading accuracy

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Sensor Performance Comparison

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* Summary of Safety and Effectiveness Data (SSED) Medical Device Databases – http://www.fda.gov

Device Matched Pairs Percent of System Readings Within MARD (%)

15/15% of Reference 20/20% of Reference 30/30% of Reference 40/40% of Reference

Eversense 16,653 86% 93% 98% 99% 8.8 Dexcom G5* 2,263 86% 93% 98% 99% 9.0 Libre Pro* 12,323 / 12,080 72% 84% 95% 99% 12.1 Medtronic Enlite 3* 2 Cal / Day 12,090 79% 88% 96% 99% 10.6 Medtronic Enlite 3* 3-4 Cals / Day 11,664 83% 91% 97% 99% 9.6

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Reduce Calibration Sensor

2-Cal Sensor, MARD 8.8% 1-Cal Sensor, MARD 9.5%

22:00 02:00 06:00 10:00 14:00 18:00

50 100 150 200 250 300 350 400 Glucose (mg/dL) Glucose (mg/dL) 50 100 150 200 250 300 350 400

22:00 02:00 06:00 10:00 14:00 18:00 Target Range Target Range

Eversense Glucose Readings Lab Reference SMBG SMBG SMBG Eversense Glucose Readings Lab Reference

user convenience same sensor

Eversense CGM System is CE marked and approved for sale in Europe. Eversense CGM System is an Investigational Device and is limited by Federal Law to investigational use in the United States.

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Patient Feedback

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“Significant reduction of hypoglycemia due to early warning → safety gain → life quality ↑↑↑ I have exercised much more.”

– Type 1 patient, Germany

“I learned a lot about my diabetes and how to manage lows and highs, when to eat and when to take more insulin or turn off the insulin pump.”

– Type 1 patient, Sweden

“The device shows both glycemic value and its trend and leads to hypoglycemia disappearance… very easy to use.”

– Romanian study participant

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Physician Feedback

“One of the features of endocrinology that appealed to me is the relative absence

  • f procedures. After

performing the sensor insertion, I realized that I no longer fear procedures. I felt very comfortable after the first two sensors.”

  • Dr. Mark Christensen,

Diablo Clinical Research, Walnut Creek, California

“It was surprising how easy the insertion procedure was.”

  • Dr. Manuela Link,

Institute for Diabetes Technology, Ulm, Germany

“I don’t understand why some would think implanting a sensor would be difficult without having any first hand knowledge of the procedure. We’re transitioning into ‘interventional endocrinologists’ to meet the needs of our patients.”

  • Dr. Timothy Bailey,

AMCR Institute, Escondido, California

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Strategic Positioning For Maximum Acceptance

Utilize experienced distributors OUS

leverage channels

Build direct sales force in US Target key clinic and patient base

competitive price to healthcare system

Total price reflects reimbursement to endos Reduced co-pays with bi-annual sensor purchase Reduce number

  • f components

to purchase CPT category III codes issued

secure comprehensive reimbursement

Classify as medical benefit Leverage positive coverage for CGM Product introductions to grow share and market

innovative product and program offering

Strong product pipeline Awareness and training programs

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Commercialization Strategy

Focused on addressable CGM markets

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Launch in 2017 European country expansion in 2017 and beyond

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US Sales Approach Begin sales management and managed care sales account hiring mid-2017 Focus on targeted high-insulin prescribing clinics Provide clinic training and reimbursement claims support

Sales Force Role By Activity and Segment

Payers Endos Diabetes Eds KOLs Patients Sales Call Sensor Training

Key Acct Mgrs N/A Sales Rep Clinical Training Mgr Sales Rep Clinical Training Mgr Sales Rep N/A

Segments Activities

Device Training By Sales, Clinic

build commercial infrastructure to drive revenue

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Product Strategy

Improve Accuracy Lower Cost Extend Duration Approve for Pediatrics Broaden Target Market Reduce Calibration Integrate with Insulin Pump

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Product Pipeline Eversense 180

full 180 day with dosing claim, 1x/Day calibration

Eversense for Pediatric Use Eversense with Pump Integration

Products to grow market share

Intensively Managed Patients

MDI Patients Pump Patients Non-MDI Patients

Products to broaden target market

Insulin Using Patients and Type 2 Patients

On-Demand

Flash Glucose Monitoring

Gemini

2 in 1

OAD Patients

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Implanted 180 day sensor, smartphone app, no transmitter worn Direct sensor communication with NFC- interfaced smartphone NFC-interfaced phones act as transmitter and receiver; powers and reads implanted sensor

the long-term flash glucose monitoring with no transmitter

On-Demand

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the ultimate flexibility for your daily life

Gemini

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Key Financial Metrics Cash/Cash Equivalents Revenue Debt Shares Outstanding

2016 Preliminary Results 2017 Guidance

6.0 – 7.0M

in revenue

~$20M ~$0.3M $20M ~93.4M

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Senseonics 2017 Milestones

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IDE 180 Day Trial

1H

CE Mark Approval 180 Day

1H 2H

PMA Approval

2H

U.S. Launch

2H

Launch Gen 2 Transmitter in EU

FY

Expand EU Commercial Launch

Eversense CGM System is CE marked and approved for sale in Europe. Eversense CGM System is an Investigational Device and is limited by Federal Law to investigational use in the United States.

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confidently live life with ease

January 2017 Investor Presentation

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